I am keen to learn the experiences with real accounts as I heard scalping might eat up the beginners in most cases. Is this really the case? If not, then what strategies, spreads, leverage etc did you use for maintaining your profits?
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A well fitting pair of running shoes then run away
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The main source of newbies making losses is that they risk too much capital per trade, overtrade, revenge trade and gamble. Without capital you cannot trade, so it makes sense NOT TO LOSE it by rashly trading.
Start by keeping risk to no more than 1% per trade. Try and restrict your trades per day. Aim to shut up shop if you hit a losing streak.
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Learn how to read price action / technicals.
Impulse/correction
Support/resistance (or, demand/supply) - slightly different but same concept
Exp moving average
Patterns (primarily channels, and pullbacks w/in the channel - think 1 2 3 pattern)
Stochastics (14 3 3 and 40 4 4)
Most important thing is to trade w/ trend 8 times out of 10.
The 2 times you go counter-trend, you need to have a tighter stop and smaller profit target.
(roughly speaking, not hard and fast rules)
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Great advice here
Thanks for the advice. I do intend to limit risk to 1%.
Honestly I don’t think I will be trading against the trend at all, at least for some time now.
Hey there, according to me, a 1 minute scalping method is a good technique for the beginners to use. One of the easiest strategies to master, you simply need to know how to open a position, gain some pips and then shortly after, closing the position.
I beg to differ here since scalping can only be for the traders who prefer focusing on 1-2 minutes charts or have the temperament to react quickly and don’t hesitate in taking quick losses which I believe traders are not here for.
How will you determine which direction the trend is?
I also believe brokers don’t prefer scalpers. Is this correct?
Well, that’s one myth. There are times few brokers don’t allow scalping because they might be trading through terminal operators. Now when a scalper exits within 1 minute, the terminal operator with the broker might not have enough time to close the trade and eventually end up bearing the loss that’ll be your gain.
Through price! Combination of higher highs and lower lows is one way
1%, you’ll go broke scalping cobber. try 0.05% or even better 0.01%. Scalping is hundreds of trades per day crossing the spread taking profits. Scalping is unobtainable in the retail market. You need a massive payroll and access to the interbank market and there orderbooks. Scalpers front run order books not a lagging indicative price.
This is not scalping and bad bad advice
no its note
Rightly put and also it’s important that one trades currency pairs like GBP/USD, EUR/USD, USD/JPY, and USD/CHF simply because they offer tightest spreads and highest trading volume.
What timeframe do you apply to define hh’s and ll’s?
I usually determine the trend direction by following the moving averages or by either analyzing the price action. The first however, helps me a lot.
I always say that trend with the trade by combining the moving average with the pivot count and then observing the candle pattern to fine-tune the analysis.